The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

For many online retailers, Amazon Direct is very interesting, especially at the beginning of their careers when they have little seed capital or time to invest in their own online business.

In this guide, we will examine in detail how the Amazon Direct business works, the key pros and cons to consider, and what direct sellers need to succeed with this business model and with Amazon as a vendor.

Contents.
1
What is the Amazon Direct Business?
2
Advantages and disadvantages of Amazon direct selling
2.1
Advantages of Amazon Direct Marketing
2.2
Disadvantages of Amazon Direct Marketing
3
Is Amazon Direct Marketing allowed or legal?
4
How does Amazon Dropshipping work in Germany?
5
Difference between Amazon Dropshipping and Amazon FBA (Amazon Logistics)
6
Simple Step-by-Step Instructions for Amazon Direct Sales
7
What are the best apps, tools and Chrome extensions for Amazon reselling?
7.1
Riviou
7.2
PayPal seller protection
8
4 Reasons You Should Build Your Direct Sales Business on Shopify, Not Amazon Itself
9
My Conclusion

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

What is an Amazon Dropshipping Business?


Amazon Dropshipping is a third-party business in which Amazon products are listed and sold in a separate online store.

When a customer places an order, the direct sales reseller goes to Amazon.com and purchases the products ordered by the end customer to the end customer’s address. The difference between the sales price and the Amazon price (minus advertising costs) is the profit.

The good news is that the company does not need to stock its own products and ship them itself.With this model, the dropshipping supplier bears the production costs, packaging costs and storage costs, making it easier to launch an e-commerce business model.

This helps merchants save the time and costs normally associated with traditional distribution channels and models.

This practice is very popular on e-commerce sites such as Amazon, Ebay, Selling.com and similar online marketplaces.

Amazon offers sellers a very wide range of products and fast shipping times, which they can take advantage of.

This offers tremendous potential for merchants to make money online through Amazon Direct.

When do online retailers sell the most?
For most direct sales sellers, the busiest day of the week is Sunday. Knowing when customer activity peaks is important for any retailer, as this information allows sellers to develop marketing strategies and promote their products through shout-outs and other forms of social media use on specific days of the week.

Pros and Cons of Amazon Direct Marketing
For sellers who are not interested in creating their own inventory lines for various reasons, Amazon Direct is one of the best options because merchants can act as intermediaries here without having to deal with physically storing and shipping their products.

Instead, they place orders with suppliers or manufacturers (in this case, Amazon) and ship the products to customers.

While the profits from this business model are not as high as other online business models, the sellers here benefit from the convenience and simplicity of using Amazon shipping in their Shopiy direct stores.

Amazon is one of the largest e-commerce sites in the world, with sales of more than €200 billion in 2019 alone.

The basic advantages and disadvantages of direct sales remain when the concept moves to Amazon, except, of course, that here, merchants must consider the ins and outs of dealing with that particular platform as a new “vendor”.

Some of the pros and cons of using Amazon Direct are explained in more detail below.

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

Advantages of Amazon Direct Marketing

Since dropshippers don’t pay to create products or inventory, the amount of money they need to start an Amazon dropshipping business is usually very small.

You only need to do 3 things.
Create a Shopify account to set up your own online store
Install the Shopify application “Zonify – Amazon Dropshipping” to be able to list Amazon products in your own online store
Create a simple Amazon account with a Prime membership
This is almost trivial compared to traditional e-commerce stores where merchants must purchase the items to be distributed in advance.

Easy access to different niches is one of the biggest advantages that Amazon Direct offers.

With a good supplier and the right products, there is no limit to the number of segments and categories you can cover when selling on Amazon Direct.

Advantages at a glance.
This business model can be fully set up in a weekend
Shipping time through Amazon as a direct sales distributor is very fast and reliable
Returns and exchanges are easy

Disadvantages of Amazon Direct Sales Marketing

As with any other business opportunity, direct sales with Amazon has some drawbacks.

Direct sales with Amazon eliminates the ability for retailers to customize product packaging to match their company’s brand image or to attach information to their products for shipment.

Since products are shipped directly from Amazon’s warehouses to customers, sellers don’t have the opportunity to put special promotions or materials in the box.

This disadvantage can hinder a merchant’s offline branding efforts when they are part of a marketing strategy.

Of course, as with any other business, shipping on behalf of a seller through Amazon does not guarantee that they will end up making a huge profit from their shipping business.

In fact, they usually have to be very strategic about the mix of products they want to list on Amazon, as merchants are unlikely to make equally high profits on each item.

Basically, products on Amazon are more expensive and it’s hard to find good, high-margin products to sell in your Shopify store.

Your downside at a glance
You can’t brand your products.
Your profits are small because products on Amazon are more expensive than on Sizzler, even though many of them are the same.
For example, your Facebook advertising budget is very small because the profits are negligible
You can only trigger a certain number of orders per day because your orders are only semi-automatic

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

Is Amazon Direct Marketing allowed or legal?

Amazon Direct Marketing is allowed, usually legal, and usually acceptable.

Sellers just need to make sure they are complying with the platform’s requirements for shippers.

Essentially, there is a right way to sell direct on Amazon and an ethically wrong way.

Therefore, it is extremely important to carefully research the requirements for sellers.

The right way to use the platform is to find unique products from manufacturers and then upload them to Shopify’s direct sales store.

Usually, shipping time is of utmost importance on Amazon.

Therefore, sellers must provide clear information here in order to meet the shipping times required by the site.

In addition, sellers must accept and comply with the return process.

How does Amazon Dropshipping work in Germany?

In principle, the use of Amazon Dropshipping is permitted.

Nevertheless, Amazon has some guidelines that entrepreneurs must follow when selling directly on Amazon Germany to avoid trouble.

There are also some important legal factors that German merchants need to consider when deciding to sell Amazon direct in Germany.

For example, shippers must ensure that they comply with the tax laws of your country/region.

They must also comply with the data protection laws that apply in Germany and Europe.

For example, European sellers who collect information from various types of visitors must inform visitors that they are doing so in accordance with EU cookie laws.

Amazon will also investigate whether sellers who operate Amazon Direct in Germany are infringing any copyrights by listing items in their stores.

This is not as extreme as Amazon FBA, but it can still happen.

Unauthorized use of trademarks, slogans, images or even colors can result in a lifetime ban of a seller’s account on Amazon.

What are the most important SEO criteria when selling direct with Amazon?
Amazon merchants can optimize their storefronts for search engines. The first place to optimize?

The product title.

This should be informative and contain information such as color, model number, size, brand name, etc. Relevant keywords in the entry’s content fields also help make the product more recognizable to search engines.

If done well, SEO can bring millions of visitors to an Amazon store.

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

The difference between Amazon Dropshipping and Amazon FBA (Fulfillment by Amazon)

Amazon FBA stands for “Fulfillment by Amazon”.

This program provides warehousing and shipping services for merchants on Amazon for their products.

Amazon Logistics takes a unique approach because Amazon is a huge marketplace for popular products.

The main difference between Amazon dropshipping and Fulfillment by Amazon is the ownership of the inventory owned by the merchant.

Anyone running a direct sales business on Amazon doesn’t own any of the merchandise themselves, but merely acts as an intermediary between the supplier and the customer.

However, anyone using Amazon’s logistics program must first invest in merchandise and then store them in Amazon’s warehouses.

For beginners, the list of disadvantages of Amazon FBA is huge and definitely not recommended, as an initial investment of four to five figures must be made, thus classifying this business model as “high risk”.

Therefore, I would not recommend anyone to sell on Amazon by themselves.

Be sure to read my article “Amazon FBA vs Dropshipping – Which is better for beginners?” When it comes out!

In return, Amazon handles all of the seller’s shipments and returns.

For sellers who are just starting their online business, the direct sales business model is more than worth it.

Note: If you are already running an online business and are considering branding your direct sales products and want to scale further, you can benefit from Amazon Logistics in this case to take advantage of the speed of Prime shipping.

However, these products should still be sold in your own online store and not as the only product listing on Amazon. fba is always just a support for your real e-commerce business.

Simple step-by-step instructions for Amazon Direct

The Amazon direct sales business in Germany does not allow direct sales retailers to resell another retailer’s products on the platform.

Therefore, the most important requirement for Amazon dropshipping, and the first step in improving Amazon dropshipping step by step, is to find high-margin products.

The second important step in this Amazon direct sales step-by-step guide is to list several profitable products in your Shopify store and simply test which ones are most popular with your customers.

The final step of the Amazon Direct Step-by-Step Guide is for you to focus on the best product and sell as much of it as possible. This process is called “Focused Scaling”.

How can online store owners increase the number of reviews they receive?
Product reviews are known to significantly increase the credibility of retailers and the attractiveness of the products they sell.

The good news is that, in practice, it is relatively easy to get customers to leave reviews about a product or store.

All a merchant needs to do is send an email or message to consumers who have already purchased the item. It is usually enough to say thank you for the purchase and ask the customer to leave a review when they are satisfied with their experience.

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

What are the best apps, tools and Chrome extensions for Amazon reselling?

It’s important to make your job in direct marketing easier and use the right apps. I’ve written a detailed guide on which Shopify apps I like best and how they work.

You can find my recommendations for Amazon Dropshipping here.

Ryviu

Ryviu is an Amazon Direct Marketing application that allows sellers to control how their ratings appear to customers and work towards better ratings while controlling and avoiding negative reviews from buyers.

In addition, existing reviews can be easily loaded into your Shopify online store.

PayPal seller protection

This application helps you sync your tracking number directly with PayPal, thus protecting your payment provider from interruptions.

Don’t have an online store yet?
Get your free Shopify account and start building your own online store today!
Create a Shopify account

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

4 reasons why you should build your direct sales business on Shopify instead of Amazon itself

Shopify provides sellers with a powerful and near-perfect framework for building their own online stores and a powerful set of eCommerce tools for sellers to promote their online stores.

When using Shopify, sellers can benefit from building a unique brand identity.

Because they create their own eCommerce site, they also create a strong and unique brand that fits their business.

Every Shopify store is fully customizable.

There are over a hundred themes to choose from in the Shopify Theme Store, all of them suitable for mobile devices, and hundreds more available on sites like ThemeForest.

Each Shopify theme can also be fully customized by editing the code.

s other big selling point is its powerful SEO features that help websites rank higher in search results so customers can find them on Google. This can ensure free traffic (visitors) to your online store.

Sellers can also access advanced analytics to find out where their customers are coming from so they can adjust their marketing accordingly.

The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!
The Ultimate Amazon Direct Marketing Guide: What you need to know before you start!

My conclusion

Amazon Direct is certainly not a walk in the park, but it’s easier than Amazon’s in-house FBA program.

If you are looking for a better direct sales provider than Amazon and cheaper, I recommend Cj Dropshipping. you can read my honest review here.

Direct sales is an attractive opportunity to become self-employed and your own boss if you have the passion and enough discipline.

As a direct sales retailer, having a mentor who is already the mentor you want to be can make the difference between success and failure.

For retailers who don’t want to keep their own inventory, direct sales is the most attractive business model when set up properly.

It’s important to start lean and expand slowly.

Even for beginners, Dropshipping is the only way to build a highly profitable e-commerce business and is best suited to the “3 Steps Reveres Dropshipping” method that I’m happy to teach you in my free potential analysis.

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